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Question on credit repair and rebuilding scores for FHA approval

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Question on credit repair and rebuilding scores for FHA approval

Hello everyone,

I am in the process of repairing my credit for the overall goal of getting approved for a mortgage down the road. My current FICO 3 score is terrible to say the least middle score of 447. I verified this thru a lender pull, my wife's scores are better but not quite there yet with a foreclosure back in 2014. She is sitting on a middle score of around 577.

 

We viewed a couple of new construction homes and the builder's loan officer referred us to a company by the name of creditrepair men. Has anyone worked with this company to repair your credit, and get items off your credit report that are inaccurate? We were given a rough estimate of about 6 months to 8 months to get the lowest median score to a 580 to qualifiy for FHA. I think this is streaching it, if my score is the lowes, that is the one the underwriter will be pulling to approve or deny the loan. Given the facts once the loan officer reviews our documentnaion we should be getting a clear answer on what the expectations are.

 

I honestly do not see my scores jumping as high to raise the median to a 580 within 6 months (133 pts). Now with this being said, I have two lates reported recently that I will list below. One payment was made 31 days late, this was my fault. However the other late payment was for a credit card payment that has to cut a check to OpenSky and the payment was made before the due date and it was not posted until after the due date. This one was sent out on the 2nd of the month, with payment being due on the 28th. Should I send a GW letter for this one?

 

In 2015 I had a repo from Capital One Auto, the remaining balance was CO with $3,380.00, they rececently sent an offer to settle the account for paid for less than owed, this offer is denied. Can I counter offer to pay for delete? Has anyone that received an offer like this ever been succesful in Captial One accepting your PFD?

 

Sorry for the long post, just want to make sure to put as much information as possible for you guys to make suggestions. Again my goal is to get my DTI down, and get that score increased to be eligible for at least the min for FHA approval with 580.

 

 

Any suggestions are always welcomed, I would prefer the honest truth than to be told something unrealistic. Thanks in advance Guys!!!!!

 

Current Trade Lines- for me

American Credit Acceptance Joint- $889 monthly   current balance $33,450.00

Santander USA Auto  Joint               $648 monthly   current balance $22,450.00

Conn's Credit                                        $192 monthly   current balance $3,200.00

OpenSky Credit Card                           $25.00 ($1,000.00CL)current balance $75.00

CREDITBANK CC                                  $25.00($300.00CL) current balance $250.00

Credit Union Installment Loan           $92.00  current balance $1,092.00

Current Trade Lines-The Wifey

American Credit Acceptance Joint/ me  $889 monthly   current balance $33,450.00

American Credit Acceptance  Ind/ $562 monthly   current balance $4,380.00  ***will payoff this year***

Santander USA Auto  Joint/ me               $648 monthly   current balance $22,450.00

 

 

Annual Salary

Me:          $52,000.00

My Wife: $51,000.00

 

 

 

 

Message 1 of 5
4 REPLIES 4
Valued Contributor

Re: Question on credit repair and rebuilding scores for FHA approval

One thing I did notice is that your wife has no open credit cards.  I would get your wife a card, any card, and even her own Open Sky.  This is a rather large potential scoring boost that will help when you need every point you can get for the future.  You really shouldn't apply for anything when leading up to a mortgage but I believe you are thinking realistically as these issues won't be resolved overnight.  So I feel comfortable recommending for her to get her own card now.  You may even try the Discover and Capital One prequals first to see if something is offered for her.  GL!

 FICO 8
Message 2 of 5
Senior Contributor

Re: Question on credit repair and rebuilding scores for FHA approval


@htx007 wrote:

Hello everyone,

I am in the process of repairing my credit for the overall goal of getting approved for a mortgage down the road. My current FICO 3 score is terrible to say the least middle score of 447. I verified this thru a lender pull, my wife's scores are better but not quite there yet with a foreclosure back in 2014. She is sitting on a middle score of around 577.

 

We viewed a couple of new construction homes and the builder's loan officer referred us to a company by the name of creditrepair men. Has anyone worked with this company to repair your credit, and get items off your credit report that are inaccurate? We were given a rough estimate of about 6 months to 8 months to get the lowest median score to a 580 to qualifiy for FHA. I think this is streaching it, if my score is the lowes, that is the one the underwriter will be pulling to approve or deny the loan. Given the facts once the loan officer reviews our documentnaion we should be getting a clear answer on what the expectations are.

 

I honestly do not see my scores jumping as high to raise the median to a 580 within 6 months (133 pts). Now with this being said, I have two lates reported recently that I will list below. One payment was made 31 days late, this was my fault. Who was the late with. Depends on who it is. I'd call and ask for a GW since it was 1 day late over 30 days. Cant hurt to ask.However the other late payment was for a credit card payment that has to cut a check to OpenSky and the payment was made before the due date and it was not posted until after the due date. If you have some kind of proof when it hit your bank. Print it and ask for a GW deletion of the late.This one was sent out on the 2nd of the month, with payment being due on the 28th. Should I send a GW letter for this one?

 

In 2015 I had a repo from Capital One Auto, the remaining balance was CO with $3,380.00, they rececently sent an offer to settle the account for paid for less than owed, this offer is denied. Can I counter offer to pay for delete? Has anyone that received an offer like this ever been succesful in Captial One accepting your PFD? Cap1 isnt really good at PFD. Settle what you can to show some kind of payoff so it can age off in time.

 

Sorry for the long post, just want to make sure to put as much information as possible for you guys to make suggestions. Again my goal is to get my DTI down, and get that score increased to be eligible for at least the min for FHA approval with 580.

 

 

Any suggestions are always welcomed, I would prefer the honest truth than to be told something unrealistic. Thanks in advance Guys!!!!!

 

Current Trade Lines- for me

American Credit Acceptance Joint- $889 monthly   current balance $33,450.00 What was the original loan amounts on the 2 car loans? This way we can see what % your at.

Santander USA Auto  Joint               $648 monthly   current balance $22,450.00

Conn's Credit                                        $192 monthly   current balance $3,200.00

OpenSky Credit Card                           $25.00 ($1,000.00CL)current balance $75.00

CREDITBANK CC                                  $25.00($300.00CL) current balance $250.00

Credit Union Installment Loan           $92.00  current balance $1,092.00

Current Trade Lines-The Wifey

American Credit Acceptance Joint/ me  $889 monthly   current balance $33,450.00

American Credit Acceptance  Ind/ $562 monthly   current balance $4,380.00  ***will payoff this year***

Santander USA Auto  Joint/ me               $648 monthly   current balance $22,450.00

 

 

Annual Salary

Me:          $52,000.00

My Wife: $51,000.00

 

 

 

 


Score seem too low for what you posted. Is there anything else that wasn't posted? You list FICO's 3's. Grab Discover Scorecard for free EX FICO 8. Or credit check total for all 3 FICO 8's for a buck and cancel before the trial ends. You need to see your FICO 2, 4, 5 mortgage scores. FICO 3 is an old credit card version. Or you could pull your 3B report here on MyFICO for all 28 scores.





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 3 of 5
New Member

Re: Question on credit repair and rebuilding scores for FHA approval

Hello,

I would also suggest a mix of credit, meaning a store card and credit card.  Maybe your wife can be an authorized user on your Opensky card.  Not to familiar with that particular card .  I do know capitalone usually will give you a change.  Just try to get your credit cards less than 30% in order for your score to increase.  Your score will increase, but it will take a few months before you see a drastic change.

Message 4 of 5
New Member

Re: Question on credit repair and rebuilding scores for FHA approval

I would have to lookup the amount that was financed for both vehicles, I can say we did get horrable APRs for both vehicles at 18%/17%. That is another goal to get our credit scores in good standing to refi with our local CU. The scores I mentioned where for the Mortgage version(s) per the lender we visited.

FICO 8's are not much better : mine are at EQ 523 TU 527 and EX 540, I will need to get my wife signed up to get her FICO's.

Message 5 of 5
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